Salaried employees will receive Form 16 by tomorrow, 15 June. Form 16 plays a crucial role in filing an income tax return (ITR) as it provides a detailed description of the salary paid to the employee, deductions claimed by the employee, and the tax deducted at source (TDS) by the employer.
Section 203 of the Income Tax Act, of1961, has made it mandatory for employers to issue Form 16 to their employees, reflecting their total TDS on income.
After you have received Form 16, it is important for you to scrutinise the details mentioned in it thoroughly so as to ensure that all the exempt allowances are properly shown. Such allowances mainly include House Rent Allowance (HRA) and Leave Travel Assistance (LTA), said tax and investment expert Balwant Jain.
ITR filing: Everything you should check in Form 16
1)The first thing to check is that your PAN matches the one mentioned in the form. If the PAN is incorrect, the tax deducted from your salary won’t be reflected in Form 26AS, and you won’t be able to claim credit for it when filing your ITR.
2)Cross-check the accuracy of your name, address, and employer’s TAN (Tax Deduction and Collection Account Number)
3)It is vital to cross-check the actual tax deducted from your salary income, comparing it with the taxes reflected in Form 16, Form 26AS, and AIS (Annual Information Statement). If you identify any discrepancies, promptly bring them to your employer’s notice and request them to rectify the information in Form 16.
4)If you opted for the old tax regime and claimed tax-saving deductions, ensure that they are correctly reflected in Form 16.
5)If you switched jobs during the financial year 2022-23, it is important to collect Form 16 from both employers.
Before filing your ITR, it is essential to cross-check and verify the information in Form 16 with your salary slips, AIS(Annual Information Statement), and Form 26AS.
It is very important to cross-check all the incomes given in AIS with the TDS certificates, interest income certificates, and Form 26AS.
Source By: livemint
